Disclosure Norms for Life and Non Life Insurance Companies MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Disclosure Norms for Life and Non Life Insurance Companies, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Disclosure Norms for Life and Non Life Insurance Companies MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Disclosure Norms for Life and Non Life Insurance Companies mcq questions that explore various aspects of Disclosure Norms for Life and Non Life Insurance Companies problems. Each MCQ is crafted to challenge your understanding of Disclosure Norms for Life and Non Life Insurance Companies principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Disclosure Norms for Life and Non Life Insurance Companies MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Disclosure Norms for Life and Non Life Insurance Companies MCQs | Page 6 of 6

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Q51.
In case of any departure from accounting policies, what is required to be disclosed?

a.

No disclosure is required for departure from accounting policies

b.

Only the reasons for departure need to be disclosed

c.

Departure from accounting policies is not allowed

d.

Departure from accounting policies should be separately disclosed with reasons

Discuss
Answer: (d).Departure from accounting policies should be separately disclosed with reasons Explanation:In case of any departure from accounting policies, it should be separately disclosed with reasons for such departure.
Q52.
What information should be separately disclosed for investments made in accordance with any statutory requirement?

a.

Only the total value of investments

b.

Investments made in accordance with statutory requirements need not be disclosed separately

c.

Nature and security of investments, but not special rights

d.

Amount, nature, security, and any special rights for investments made in accordance with statutory requirements

Discuss
Answer: (d).Amount, nature, security, and any special rights for investments made in accordance with statutory requirements Explanation:Investments made in accordance with any statutory requirement should be disclosed separately with their amount, nature, security, and any special rights.
Q53.
How should an insurance company disclose the segregation of investments into performing/non-performing for income recognition?

a.

No disclosure is required for the segregation of investments

b.

Disclose only the total value of investments

c.

Disclose the segregation into performing/non-performing investments

d.

Disclose only the percentage of performing investments

Discuss
Answer: (c).Disclose the segregation into performing/non-performing investments Explanation:The segregation into performing/non-performing investments for the purpose of income recognition should be disclosed.
Q54.
What information should be disclosed regarding the percentage of business sector-wise?

a.

No information is required for the percentage of business sector-wise

b.

Disclose only the total percentage without sector-wise details

c.

Disclose the percentage of business sector-wise

d.

Disclose only the total percentage of business

Discuss
Answer: (c).Disclose the percentage of business sector-wise Explanation:The percentage of business sector-wise should be disclosed.
Q55.
Why is public disclosure of insurance companies important for regulators?

a.

It helps the regulator to understand market discipline

b.

It facilitates the formulation, revision, and amendment of regulations

c.

It ensures profitability for insurance companies

d.

It promotes competition in the insurance sector

Discuss
Answer: (b).It facilitates the formulation, revision, and amendment of regulations Explanation:Public disclosure helps the regulator formulate, revise, and amend regulations to bring more market discipline and ensure the real and sustainable development of the insurance sector.
Q56.
How does adequate public disclosure benefit insured individuals and prospects?

a.

It ensures corporate policy compliance

b.

It guarantees profitability for the insured

c.

It helps in making conscious and informed decisions about insurers and insurance products

d.

It reduces the transparency in administration

Discuss
Answer: (c).It helps in making conscious and informed decisions about insurers and insurance products Explanation:Adequate public disclosure provides information about product features, availability, corporate policy, solvency, liquidity, profitability, and transparency. This helps insured individuals and prospects make conscious and informed decisions about insurers and insurance products.
Q57.
What role does the International Association of Insurance Supervisors (IAIS) play in public disclosures?

a.

It issues guidelines for insurance products

b.

It provides regulatory frameworks for disclosure norms

c.

It oversees the profitability of insurance companies

d.

It facilitates the marketing of insurance products

Discuss
Answer: (b).It provides regulatory frameworks for disclosure norms Explanation:The IAIS deals with various aspects related to public disclosures by insurance companies and issues guidance papers, standards, and principles to provide regulatory frameworks for disclosure norms.
Q58.
According to ICP 26 of IAIS, what does the supervisory authority require insurers to do regarding disclosure?

a.

Disclose all internal policies

b.

Disclose information irrelevant to stakeholders

c.

Disclose relevant information on a timely basis to give stakeholders a clear view of business activities and financial position

d.

Disclose only financial performance metrics

Discuss
Answer: (c).Disclose relevant information on a timely basis to give stakeholders a clear view of business activities and financial position Explanation:ICP 26 of IAIS requires insurers to disclose relevant information on a timely basis to give stakeholders a clear view of their business activities and financial position.
Q59.
How does the regulatory authority in India, IRDA, ensure uniformity in disclosures among insurers?

a.

By issuing periodic circulars with guidelines on disclosures

b.

By mandating profitability standards for all insurers

c.

By regulating insurance premiums

d.

By conducting regular audits of insurers

Discuss
Answer: (a).By issuing periodic circulars with guidelines on disclosures Explanation:The IRDA ensures uniformity among insurers by issuing periodic circulars with guidelines on disclosures, as mentioned in the Guidelines on Periodic Disclosures (IRDA Circular dated 9-4-2010).
Q60.
As per the IRDA's Guidelines on Periodic Disclosures, insurers are required to display last 5 years' data on which basis?

a.

Monthly

b.

Quarterly

c.

Annual

d.

Any of the above

Discuss
Answer: (c).Annual Explanation:According to the IRDA's Guidelines on Periodic Disclosures, insurers are required to display information based on the yearly audited statement for the last 5 years. This clarification applies to disclosures related to geographical distribution, claim ageing, and quarterly claim data. It means that the data should be presented on an annual basis, not monthly or quarterly.
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